connecor company presentation summary selling a business

Company Presentation- Summary Selling a Business

Presented by: H.J. Oudeman

December 2012December 2012December 2012December 2012

ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestments

Connecting businesses … is our business

• In-house deal-making expertise and experience

• Worldwide network of own and affiliated offices

• Worldwide network with professional parties and

• Access to all legal, fiscal, financial & administrative services

needed, in all languages, to structure deals

What is it that we do?

• We assist owners and future owners of businesses in the process

of the transition of ownership of a company

• We sell and find businesses, working together with other

professionals to make deals happen

• We value, prepare and promote businesses for a take-over and

help getting a deal done through legal and fiscal structures

2


Overview of the decision process before selling a business:

What's next? Owners of businesses

- I - Continue w/company

- II - I do not continue

A. I do not continue alone I.B. shareholder

3

A. I do not continue alone I.B. shareholder

II.

B. I stop

I have succession II.B.1. Succession plan (fiscal)

II.B.

2. I have no succession

a. I am looking for a buyer II.B.2.a. Sale of the company

II.B.2.

b. I am closing the co. II.B.2.b. Divesting/liquidation


Overview of the selling process of a business: The Steps

Steps

Processes Decision

Revision of future client

Interview with owner

Assessment business Explain Selling Process

Prepare a valuation

Valuation of the business

Data gathering

Recasting financials Prepare Valuation /

Price opinion

Agree on representation

Preparing Prepare Sales Dossier / plan Prepare media plans Organize Data Room Put the business on the

4

Preparing for the selling process

Prepare Sales Dossier / plan

of offering

Prepare media plans Organize Data Room Put the business on the

market

Promoting the business to buyers

Select media / List with

buyers

Place ads / distribute teasers Data base of interested

parties

Enough interest generated?

Interviewing potential buyers

Interviewing at offices /

Financially solid?

NDA / Explain process Introduction to seller Seriously interested parties

found?

Negotiating with interested parties

Formalizing serious interest

Exclusive period / LOI Financing possibilities /

downpayment

Accept Offer to purchase

(LOI)?

Closing the deal Due Diligence

Transfers / Redaction of

contracts

Review all documents Sign the deal!


Overview of the selling process of a business: Time & Sequence -1-

OPTION: CICLE OF A PLANNED EXIT STRATEGY

SUCCESSION OR SALE

1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6

CMarketing

Visits and

Letter of Intent and

elimination of contingenciesInterviews

Deal closed

5

IXVIIVIVIVII III VIIII

A

B

InitialReview

Analysis and valuation

Preparationof the

presentation

Interviews

Visits andnegotiations

Verification and hand-over




Overview of the selling process of a business: Like a sailing boat

6



1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6

Marketing

The Harbor

Visits and


elimination of contingenciesInterviews

The WindThe Sails The Spinnaker

7


InitialReview


Preparationof the

presentation

Interviews





The Rudder

The Hull

The Sails

The SeaThe Hull

The Spinnaker

The Dagger

The Deck



I Phase of initial review The Rudder Set out the right course

II Phase of analysis and valuation The Hull/The Dagger Have a solid foundation

III Phase of preparation and presentation The Deck/The Masts Have great equipment

IV Phase of marketing The Wind Generate enough attention

8

IV Phase of marketing The Wind Generate enough attention

V Phase of interviewing Catch the right attention,

VI Phase of general review review and correct when necessary

VII Phase of visits and negotiations

VIII Phase of exclusive negotiation

IX Phase of closing and hand-over The Sea/The Harbor Overcome the environment and close the deal

You are the owner of the boat, but do you have a good captain to sail to a safe harbor during these turbulent times?

The Sails

Spinnaker Be prepared to do what is needed



minimum maximum

I Phase of initial review 1 1 weeks Review potential

II Phase of analysis and valuation 2 4 weeks Number crunching

III Phase of preparation and presentation 1 2 weeks Preparations & presentations

IV Phase of marketing 1 1 weeks Marketing

9

IV Phase of marketing 1 1 weeks Marketing

V Phase of interviewing 4 12 weeks

VI Phase of general review 1 2 weeks

VII Phase of visits and negotiations 2 4 weeks Negotiations and visits

VIII Phase of exclusive negotiation 1 2 weeks Serious interest

IX Phase of closing and hand-over 4 6 weeks Verification and hand-over

Estimated time 17 34 weeks

Average weeks

Interviewing

26



OPTION: CICLE OF A PLANNED EXIT STRATEGY

SUCCESSION OR SALE

1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6

C

Deal closed

10%

50%

10%

Marketing

Visits and


elimination of contingencies

Interviews

10


A

B

100% 80%

20%

60%

20% 20% 20%

30%

50%

10%

25%

25%

40%

50%

35%

InitialReview


Preparationof the

presentation Interviews





15%



Points of attention Attention focussed on:

I Revision 100%

II Analysis & valuation (A&V) 100%

III A&V, preparation 20% 80%

IV A&V, preparation, marketing 20% 30% 50%

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IV A&V, preparation, marketing 20% 30% 50%

V A&V, preparation, marketing, interviews 20% 10% 10% 60%

VI A&V, preparation, marketing, interviews 20% 20% 10% 50%

VII A&V, preparation, marketing, negotiations 40% 10% 25% 25%

VIII A&V, marketing, negotiations 50% 5% 45%

IX A&V, negotiations 15% 35% 50%

Revision

A&VPreparatio

n

Marketing

Interviewing

Negotiatio

ns

Closing

Total time dedicated: 3% 33% 11% 15% 17% 12% 9%


Overview of the selling process of a business: Decision making

Milestones

I After the initial review a decision needs to be made if the cycle is to be initiated

II After discussing the valuation report a decision is needed to put the company up for sale or not, at what price and which conditions

III The presentations and marketing material needs to be prepared and approved

IV The first contacts with interested parties are attended: initial feedback

V Review of the results of the marketing, presentations and interviews

12

V Review of the results of the marketing, presentations and interviews

VI Adjustments necessary in marketing and presentations?; visits with seriously interested parties

VII A period of exclusive negotiations is accepted

VIII Letter of intend, verifications and elimination of contingencies; involvement of attorneys/lawyers, accountants

IX Closing the deal and hand-over of the company

Levels of decision making:

A After reviewing the valuation and analysis the owner needs to take the decisión of putting the business up for sale, or continue, or close

B After receiving feedback from interested parties the owner needs to take a decision to contine the proces and make adjustments

C After negotiating with seriously interested parties, the owner needs to decide to go ahead with the sale, or continue or close the business

ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor : Offices: Offices: Offices: Offices: Offices: Offices: Offices: Offices

• We have 6 own offices worldwide

Where are we

• Amsterdam

• Barcelona

• London

• Hong Kong

• Shanghai

• Singapore

And have 650 associates in over 30 countries worldwide

13

January 2008

youJanuary 2011January 2011January 2011January 2011

Spain: Connecor Investments S.L., Avenida Diagonal 399, 1º, 1ª, 08008, Barcelona, Spain Tel: +34 93 476 0170, Fax: +34 93 208 2582

The Netherlands: Connecor The Netherlands, WTC Amsterdam, Tower C-6th floor, Strawinskylaan 661,1077XX, Amsterdam, The Netherlands Tel: +31 20 578 8387, Fax: +31 20 578 8376

United Kingdom: Connecor United Kingdom (a trading name of Welland Investments Limited), 4th Floor, Clerks Well House, 20 Britton Street, EC1M 5TU, London, United Kingdom Tel: +44 207 977 1280, Fax: +44 207 6917 703

Hong Kong: Connecor Hong Kong, Rooms 2103-04, Wing On Centre, 111 Connaught Road Central, Hong Kong Tel.: +852 3590 3321, Fax: +852 3006 1436

Singapore: 14 Robinson Road, #13-00 Far East Finance Building, Singapore 048545 Tel: +65 6866 143, Fax: +65 3125 7293

Shanghai: Connecor Shanghai, 3108 United Plaza, 1468 Nanjing Road, West Jing'an District, Shanghai 200040, China Tel: +86 21 62896665, Fax: +86 21 62896697

[email protected]

connecor company presentation summary selling a business

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